Toyota, Nippon Steel Agree on Steel Price Hike from Oct.

Tokyo, Aug. 28 (Jiji Press)–Toyota Motor Corp. has agreed with Nippon Steel Corp. to raise steel procurement prices by about 12,000 yen per ton from October, marking the first increase in four years, according to informed sources. Toyota negotiates steel procurement prices twice a year in principle, for the first and second halves of each fiscal year. Prices were kept unchanged for the April-September first half of fiscal 2026. Toyota has considerable bargaining power because it procures steel collectively, including supplies for its affiliated parts manufacturers. Its price negotiations with Nippon Steel, Japan’s largest steelmaker, are known as the “champion negotiations” and are closely watched as a benchmark that is expected to influence industries beyond automaking, including electronics and shipbuilding. The newly agreed price increase, which came to light on Thursday, appears to reflect rises in the prices of steelmaking raw materials such as coal and higher energy costs amid worsening tensions in the Middle East. Toyota is also expected to raise the prices at which it supplies steel to affiliated parts manufacturers in line with the higher procurement costs. The focus will now turn to whether the increased costs will be passed on to vehicle prices. END [Copyright The Jiji Press, Ltd.]